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4.000 Administration

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4.320 Search Committee Process

4.330 Employment and Termination

4.340 Employee Grievance Procedures

4.350 Staff Governance and Organization

4.400 Health and Disability Insurance and Retirement

4.410 Voluntary Early Retirement Plan

4.420 Definition of Retirement

4.430 Credit Union

4.440 Employee Tuition Waiver

4.450 Faculty/Staff Discount for Community and Corporate Training

4.500 Catastrophic Leave Policy

4.510 Purchase of Unused Sick Leave

4.520 Attendance and Punctuality

4.530 Work Schedules and Office Hours

4.540 Transfer of Leave Between State Agencies

4.550 Time Sheets

4.560 Overtime

4.570 Participation in Fall Workshop and Graduation

4.580 Travel Reimbursement

4.410 Voluntary Early Retirement Plan


Policy Number: 4.410 

Subject: Voluntary Early Retirement Plan

Date Adopted: November 20, 1996, Revised November 15, 2000, Revised June 24, 2009,  Revised March 30, 2011

In the interest of providing the opportunity of an additional fringe benefit and providing salary savings and other advantages for the College, National Park Community College has established a Voluntary Early Retirement Program with the features described below. At the end of this description of the program, there are necessary definitions which are incorporated into the program. Note: The President of the College reserves the right to make the final decision when any part of the Voluntary Early Retirement Policy 4.410 is in question or there are extenuating circumstances.

General Eligibility. Employees between the ages of fifty-five (55) and sixty (60) shall become eligible for early retirement benefits in the calendar year in which the sum of their age and years of continuous full-time service to the College equals seventy (70).

Employees sixty (60) years of age and older are eligible for early retirement benefits in the calendar year in which they have at least ten (10) years of continuous full-time service to the College.

Health Insurance. The college will pay for health insurance for individuals retiring under the plan until age 65 under the same conditions that it provides health insurance for active employees. After age 65, retirees may purchase coverage, if desired, under the provisions of the college health insurance program.

If, at the time of a retiree's death his or her spouse is covered under the college health insurance program, the spouse may choose to continue to purchase coverage under the provisions of the college health insurance program until age 65.

Life Insurance. The college will continue to pay for life insurance for individuals retiring under the plan until age 65 under the same conditions that it provides life insurance for active employees. After age 65, retirees may purchase coverage, if desired, under the provisions of the college life insurance plans.

Cash Bonus. The college will pay a cash bonus to individuals choosing early retirement at various ages as follows:

Age 55-60: 2% of salary for each year of full-time employment at NPCC up to a maximum of 50%
Age 61: 2% of salary for each year of full-time employment at NPCC up to a maximum of 40%
Age 62: 2% of salary for each year of full-time employment at NPCC up to a maximum of 30%
Age 63: 20% of salary
Age 64: 10% of salary
Age 65 and older: Long service bonus of $500

Positions funded from external or grant funds are not eligible for the cash bonus. Eligible employees may determine which portions of the cash bonus are paid to them directly or to their retirement accounts. It is the responsibility of the employee to determine the maximum amount that can be "sheltered" in a tax-deferred retirement account.

Phasing. Phasing may be an option on a very limited basis and at the discretion of the President. Early retirement from some positions will not permit phasing. The President will review each application for phasing of early retirement and make a determination based on the best interests of the college.

Upon written approval of the President, an approved individual may enter the early retirement program with declining levels of employment over a period not to exceed three years. Work hours and responsibilities shall be negotiated with the best interests of the college in mind.

During the phasing period, an employee shall be paid salary pro rata based upon his or her regular contract or classified salary amount and be entitled to the same fringe benefits as full-time employees. An individual phasing into early retirement who decides to retire sooner may do so if funding is available. The cash bonus will be paid to employees phasing early retirement at complete retirement based on their last full-time regular contract amount.

Procedures. Participation in the early retirement program is voluntary, at the option of the employee. Early retirement will be effective for contract employees at the end of their regular contract and for classified employees at the end of their usual employment period or the end of the fiscal year. An individual wishing to retire under this program must submit the completed application for early retirement to the President no later than January 1 prior to his or her desired retirement at the end of current employment or the fiscal year. The individual will have a mandatory 45 day review and retraction period between January 1 and February 15 in which the decision shall be reconsidered with the assistance of such legal, financial, and other advisors as the applicant finds necessary. Selecting and paying the advisors are responsibilities of the applicant. Final approval of the application will require Board of Trustees action, normally at its February meeting. An exception to the deadline will be considered only in an unanticipated health emergency.

Other Provisions. Persons retiring under this plan will continue to receive bookstore discounts, tuition waivers, library access, and invitations to college functions on the same basis as full-time college employees.

Employees eligible for other early retirement programs with bonus provisions offered by the state are not eligible for this program.

The early retirement program is not available to an individual who is on leave-without-pay, receiving long-term disability insurance benefits, receiving worker's compensation, or engaged in litigation with the college.

For an individual to be eligible for the Voluntary Early Retirement Program cash bonus, at least the last three years of full-time employment at NPCC must be funded from institutional (not external or grant) funds unless the external funding is adequate to fund the person's early retirement costs. Positions funded from external or grant funds are eligible for all other provisions of the Early Retirement Program except the cash bonus. This provision in no way commits the college to employ an individual previously employed on external or grant funds.

Electing to retire under the early retirement program, except under the phasing provisions, will prohibit any future employment at the college except on a part-time temporary basis.

If the total number of qualified applicants for early retirement would require funds in excess of the legislated limitation or funds available in a fiscal year, the individuals will be prioritized by service time to the institution and, if the service time is equal, by highest age. The legislated limitation is one percent (1%) of personnel costs during the preceding fiscal year. An eligible individual for whom funding is not possible who applies can leave the application active and receive the cash bonus based upon his or her age under the initial application.

While the calculations of benefits under the early retirement program shall be made by the College business office, it is the responsibility of the applicant to verify the calculations and it is the responsibility of both the College and the applicant to call attention to and correct any errors or omissions.

The College reserves the right to change the Early Retirement Program from time to time as determined by the Board of Trustees.

Definitions.

Age. The age to be used for determining initial eligibility is the age the person will be at the last day of employment. The age or date to be used for all provisions effective after retirement is the actual age or date involved.

Salary. The salary to be used as the basis for cash bonus payments for eligible contract employees will be the amount of the last regular nine-month or annual contract. The salary to be used for eligible classified employees will be the annual rate in effect on the last day of employment.

Years of full-time employment. Years of full-time employment under this plan will be calculated in whole year increments based on a fiscal or academic year and will require full-time employment for a nine to twelve month contract for each year.

Fiscal year. The fiscal year for NPCC begins on July 1 of one calendar year and ends on June 30 of the following calendar year.

While the calculations of benefits under the early retirement program shall be made by the College business office, it is the responsibility of the applicant to verify the calculations and it is the responsibility of both the College and the applicant to call attention to and correct any errors or omissions.

The College reserves the right to change the Early Retirement Program from time to time as determined by the Board of Trustees.